What is the purpose of the new 2010 Equity Incentive Plan?

The 2010 Equity Incentive Plan is designed to provide Flextronics with a flexible mechanism to grant equity-based awards such as stock options, restricted shares, and performance awards to employees and non-employee directors. This is intended to attract, retain, and motivate key personnel by aligning their interests with those of shareholders.

How many shares are available under the new incentive plan, and will it dilute existing shareholders?

The 2010 Equity Incentive Plan has 10 million ordinary shares reserved for issuance. Additionally, any shares available under previous incentive plans (2001, 2002, 2004) will also become available under the new plan. Dilution will depend on the number of awards granted and exercised over time. Shareholders approved the general authorization for the board to allot and issue shares, which provides the framework for issuing shares under such plans.

What is the significance of the Share Purchase Mandate renewal?

The renewal of the Share Purchase Mandate gives the company's Board of Directors the authority to purchase Flextronics's own ordinary shares from the open market or through other means. This can be used to return capital to shareholders, offset dilution from equity awards, or for other corporate purposes, and indicates management's belief that the company's stock may be undervalued.

Are there any significant changes in the Board of Directors?

No, this filing indicates the re-election of two existing directors, Mr. H. Raymond Bingham and Dr. Willy C. Shih. Other directors mentioned continued their terms, suggesting continuity on the Board rather than significant changes.

FLEX 8-K: Leadership Changes & Shareholder Matters

Summary

This Form 8-K filing by Flextronics International Ltd. (FLEX) on July 28, 2010, primarily details the outcomes of its Annual and Extraordinary General Meetings of Shareholders held on July 23, 2010. The most significant event for investors is the shareholder approval of the Flextronics International Ltd. 2010 Equity Incentive Plan. This new plan allows for the issuance of various equity-based awards, including stock options and restricted shares, to employees and non-employee directors, with 10 million ordinary shares reserved for this purpose. It also incorporates shares available from prior incentive plans. Additionally, the report confirms the re-election of two directors, Mr. H. Raymond Bingham and Dr. Willy C. Shih, to the Board. Shareholders also re-appointed Deloitte & Touche LLP as the independent auditors for the 2011 fiscal year and approved a general authorization for the board to allot and issue ordinary shares. Finally, shareholders approved the renewal of the Share Purchase Mandate, allowing the company to repurchase its own ordinary shares.

Key Highlights

1Shareholders approved the adoption of the Flextronics International Ltd. 2010 Equity Incentive Plan.
2The 2010 Equity Incentive Plan reserves 10 million ordinary shares for issuance and can include shares from prior incentive plans.
3Mr. H. Raymond Bingham and Dr. Willy C. Shih were re-elected to the Board of Directors.
4Deloitte & Touche LLP was re-appointed as the independent auditor for fiscal year 2011.
5Shareholders granted general authorization for the directors to allot and issue ordinary shares.
6The renewal of the Share Purchase Mandate was approved, allowing the company to buy back its own shares.

FLEX LTD. 8-K Report, Executive Changes (Jul 28, 2010)

Summary

Key Highlights

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